report of the subcommittee on higher education appropriations...

Report of the Subcommittee on Higher Education

Senate Finance & Appropriations Committee Virginia General Assembly

February 16, 2020

2020 Report of the Higher Education Subcommittee The Honorable Mamie E. Locke, Chair

February 16, 2020

Madam Chair and Members of the Committee:

Your Subcommittee has reviewed the Governor’s proposed biennial budget for Higher Education. This budget, with our recommended amendments, is focused on targeted student affordability and completion in our strong and diverse system of institutions across the Commonwealth. We endorse the following items:

• $96.7 million over the biennium for a new “last dollar plus” community

college workforce initiative (“G3”). This program is focused on low-income students pursuing applied degrees in high demand areas. Students can expect to earn 60 percent more after gaining these skills. The program will provide businesses with needed workers in skilled trades, health care, law enforcement, and early childhood education.

• We include: $60.6 million for additional undergraduate need-based financial aid.

• We approve: $14.5 million for new pilot affordability programs at VSU and NSU. These programs can go beyond tuition support, to also help students with the additional costs of attendance that are often barriers to completion.

• We offer: $13.3 million additional for Tuition Assistance Grants (TAG) for students attending Virginia private colleges.

Our prioritization of targeted student aid, combined with strategic

support for all institutions, is what is needed over the long-term to meet our education attainment goal of being the best educated state by 2030. The Subcommittee recommendations attempt to reflect the differences in mission and market of our institutions, and to meet our fiscal charge to efficiently allocate limited state general fund dollars.

One size does not fit all. State funding for across-the-board tuition

freezes, while simple, often simply perpetuates the past. Our recommendations instead provide, along with the student aid investments, more enrollment management flexibility, the annual Tech Talent commitments, compensation funding, and base operating support, with a focus this year on institutions that serve more “Pell-eligible” students.

We hope it will be the pleasure of the Committee to adopt our

amendments.

Higher Education

Respectfully Submitted, _________________________________________ The Honorable Mamie E. Locke, Chair _________________________________________ The Honorable Janet D. Howell _________________________________________ The Honorable Richard L. Saslaw _________________________________________ The Honorable Thomas K. Norment, Jr. _________________________________________ The Honorable Frank M. Ruff, Jr. _________________________________________ The Honorable John S. Edwards

Report of the Subcommittee on Higher Education(Recommended Amendments to SB 29 and SB 30, As Introduced)

SB 29, GF SB 30, General FundAmendment FY 2020 FY 2021 FY 2022 Biennium

12 Virginia Space Grant Consortium ‐ Earth System Science 220,375$ 220,375$ 440,750$ 3 Innovative Internship Fund 300,000$ 1,300,000$ 1,600,000$ 4 Guidance to Post‐Secondary Success 250,000$ 250,000$ 500,000$ 5 Office of the Qualified Loan Ombudsman 100,000$ 50,000$ 150,000$ 6 Tuition Assistance Grant 7,310,000$ 7,310,000$ 7 Transfer Workforce Credential Grant Increase to G3 (4,000,000)$ (4,000,000)$ (8,000,000)$ 8 Financial Aid Award Policies Study Language ‐$ 9 Higher Education Cost Study 150,000$ 150,000$ 300,000$ 1011 CNU ‐ Undergraduate Need‐Based Financial Aid 124,800$ 124,800$ 12 CNU ‐ Senate Higher Education Equity Base Operating Support 452,300$ 452,300$ 904,600$ 13 CNU ‐ Additional Operations & Maintenance Support 450,000$ 450,000$ 900,000$ 14 CWM ‐ Undergraduate Need‐Based Financial Aid 66,500$ 66,500$ 15 CWM ‐ Graduate Aid (Research) 79,400$ 119,300$ 198,700$ 21 VIMS ‐ Graduate Aid (Research) 53,400$ 80,000$ 133,400$ 22 VIMS ‐ Manage Aquatic Diseases 225,000$ 225,000$ 450,000$ 23 GMU ‐ Undergraduate Need‐Based Financial Aid 3,472,500$ 3,472,500$ 24 GMU ‐ Graduate Aid (Research) 53,400$ 80,000$ 133,400$ 25 JMU ‐ Undergraduate Need‐Based Financial Aid 639,700$ 639,700$ 26 JMU ‐ Senate Higher Education Equity Base Operating Support 1,514,500$ 1,514,500$ 3,029,000$ 27 JMU ‐ Transfer Montpelier Funding (1,000,000)$ (1,000,000)$ (2,000,000)$ 28 UMW ‐ Undergraduate Need‐Based Financial Aid 235,200$ 235,200$ 29 UMW ‐ Senate Higher Education Equity Base Operating Support 713,200$ 713,200$ 1,426,400$ 30 UMW ‐ 2+2 Workforce Development Initiative 270,000$ 332,000$ 602,000$ 31 LU ‐ Undergraduate Need‐Based Financial Aid 393,700$ 393,700$ 32 LU ‐ Senate Higher Education Equity Base Operating Support 752,600$ 752,600$ 1,505,200$ 33 NSU ‐ Undergraduate Need‐Based Financial Aid 816,100$ 816,100$ 34 NSU ‐ VCAN Affordability Initiative (1,413,175)$ (1,413,175)$ 35 ODU ‐ Undergraduate Need‐Based Financial Aid 2,668,500$ 2,668,500$ 36 ODU ‐ Graduate Aid (Research) 165,800$ 248,600$ 414,400$ 37 ODU ‐ Base Operating Support (3,000,000)$ (3,600,000)$ (6,600,000)$ 16 RB ‐ Undergraduate Need‐Based Financial Aid 77,200$ 77,200$ 17 RB ‐ Senate Higher Education Equity Base Operating Support 233,800$ 233,800$ 467,600$ 18 RB ‐ Audit Compliance 708,000$ 708,000$ 1,416,000$

State Council of Higher Education for Virginia

Institutions

February 16, 2020 Page 1 Senate Finance and Appropriations Committee



19 RB ‐ Technical Amendment 20,326$ 20,326$ 40,652$ 20 RB ‐ Technical Amendment (20,326)$ (20,326)$ (40,652)$ 38 RU ‐ Undergraduate Need‐Based Financial Aid 1,269,200$ 1,269,200$ 39 RU ‐ Senate Higher Education Equity Base Operating Support 2,257,800$ 2,257,800$ 4,515,600$ 40 UVA ‐ Undergraduate Need‐Based Financial Aid 160,200$ 160,200$ 41 UVA ‐ Graduate Aid (Research) 222,800$ 334,200$ 557,000$ 42 UVA ‐ Focused Ultrasound Center (1,000,000)$ (1,000,000)$ (2,000,000)$ 43 UVA ‐ Foundation for the Humanities (500,000)$ (500,000)$ (1,000,000)$ 44 UVA‐Wise ‐ Undergraduate Need‐Based Financial Aid 201,400$ 201,400$ 45 UVA‐Wise ‐ Senate Higher Education Equity Base Operating Support 429,300$ 429,300$ 858,600$ 46 VCU ‐ Undergraduate Need‐Based Financial Aid 2,319,200$ 2,319,200$ 47 VCU ‐ Graduate Aid (Research) 140,400$ 210,700$ 351,100$ 48 VCU ‐ Senate Higher Education Equity Base Operating Support 5,700,000$ 5,700,000$ 11,400,000$ 49 VCU ‐ Massey Cancer Center 1,500,000 (5,000,000)$ (5,000,000)$ (10,000,000)$ 50 VCCS ‐ Undergraduate Need‐Based Financial Aid 1,135,500$ 1,135,500$ 51 VCCS ‐ Last Dollar Plus Workforce Initiative (ʺG3ʺ) (25,205,953)$ (23,205,953)$ (48,411,906)$ 52 VCCS ‐ VWCC Healthcare Programs 385,177$ 385,177$ 53 VCCS ‐ Minority and Women Business Enterprise Collaboration 386,746$ 386,746$ 773,492$ 54 VCCS ‐ LFCC Hub for Innovation, Virtual Reality, and Entrepreneurship 1,000,000$ 1,000,000$ 55 VCCS ‐ CVCC Bedford Campus Language ‐$ 56 VCCS ‐ Regional Advanced Technology and Workforce Center Plan Language ‐$ 57 VMI ‐ Undergraduate Need‐Based Financial Aid 13,400$ 13,400$ 58 VMI ‐ Senate Higher Education Equity Base Operating Support 121,900$ 121,900$ 243,800$ 59 VMI ‐ Math Education and Academic Centers 122,500$ 126,000$ 248,500$ 60 VMI ‐ Core Leadership Course 100,047$ 103,048$ 203,095$ 61 VSU ‐ Undergraduate Need‐Based Financial Aid 738,500$ 738,500$ 62 VSU ‐ VCAN Affordability Initiative (1,099,275)$ (1,099,275)$ 63 VT ‐ Undergraduate Need‐Based Financial Aid 811,600$ 811,600$ 64 VT ‐ Graduate Aid (Research) 284,800$ 427,200$ 712,000$ 6566 Add James Madison University 1,000,000$ 1,000,000$ 2,000,000$ 6768 Personnel Staffing 95,000$ 95,000$ 190,000$ 6970 Personnel Staffing 95,000$ 95,000$ 190,000$

New College Institute

Institute for Advanced Learning and Research

Online Virginia Network




7172 Academic Student Success Center 213,254$ 146,356$ 359,610$ 73 Safety and Security 98,817$ 47,944$ 146,761$ 7475 Training Equipment and Personnel 293,972$ 95,000$ 388,972$ 7677 Personnel Staffing 95,000$ 95,000$ 190,000$ 78 Rural Information Technology Apprenticeship Grants 1,000,000$ 1,000,000$ 2,000,000$ 7980 Jefferson Lab (3,000,000)$ (3,000,000)$ (6,000,000)$ 81 96,358$ (22,882,357)$ (22,785,999)$ 828384 Virginia Commission for the Arts ‐ Grants to Arts Organizations (2,500,000)$ (1,500,000)$ (4,000,000)$ 85 Library of Virginia ‐ State Aid for Public Libraries 1,000,000$ 1,000,000$ 2,000,000$ 86 Jamestown‐Yorktown ‐ 2019 Commemoration Close Out 442,870$ 8,702$ 451,572$ 87 Jamestown‐Yorktown ‐ Education Services and Partnerships 491,200$ 345,100$ 836,300$ 88 Jamestown‐Yorktown ‐ Marketing and Tourism Promotion 208,000$ 245,000$ 453,000$ 89 Science Museum of Virginia ‐ Security 210,000$ 210,000$ 420,000$ 90 Virginia Museum of Fine Arts ‐ Storage Lease Costs 200,000$ 200,000$ 400,000$ 91 52,070$ 508,802$ 560,872$ 929394 Workforce Case Management System Integration (5,050,000)$ 800,000$ (4,250,000)$ 95 Compensation and Benefits Adjustments96 Classified Staff ‐ 3% Bonus in FY 2021, 3% Increase in FY 202296 Faculty ‐ 3% Bonus in FY 2021, 3% Increase in FY 2022 27,316,245$ 27,991,827$ 55,308,072$ 97 Adjuncts ‐ 3% Bonus in FY 2021, 3% Increase in FY 2022 2,290,800$ 2,290,800$ 4,581,600$ 98 29,607,045$ 30,282,627$ 59,889,672$ 99100 PART 4 ‐ 101 Enrollment Management Flexibility Language Language102 NCI ‐ Salary Table Language Language103 Adjust Merit Increase Language Language104 Language

Classified Included with State Employees Amount

Various Language Amendments

Other Education Agencies

CENTRAL APPROPRIATIONS

Southeastern Universities Research Association

Southwest Virginia Higher Education Center

Roanoke Higher Education Authority

Southern Virginia Higher Education Center

Subtotal, Other Education

Subtotal, Higher Education (also see Higher Education Compensation below)

Subtotal, Higher Education Compensation


February 16, 2020 Report of the Higher Education Subcommittee, Senate Bill 30

Item 150 #2s

SCHEV - Tuition Assistance Grant Program

Education FY20-21 FY21-22

State Council of Higher Educationfor Virginia

$7,310,000 $0 GF

Language:

Page 172, line 42, strike "$100,198,559" and insert "$107,508,559".Page 173, line 8, strike the first instance of "$74,098,303" and insert "$81,408,303".Page 174, strike lines 22 and 23 and insert:"11. In the first year, students enrolled in an online education or distance learningprogram are eligible to receive awards of up to $3,400. Beginning in the second year,students enrolled in an online education or distance learning program are not eligible toreceive awards from the Tuition Assistance Grant Program.".

Explanation:

(This amendment restores eligibility for Tuition Assistance Grants for students enrolledin fully online programs in the first year of the budget, up to $3,400 per student, butmaintains the position in the budget as introduced in the second year.)

Item 156 #2s

CNU - Base Operating Support


Christopher Newport University $452,300 $452,300 GF

Language:

Page 180, line 33, strike "$81,019,468" and insert "$81,471,768".Page 180, line 33, strike "$81,019,468" and insert "$81,471,768".

Explanation:

(This amendment provides base operating support in both years. This is one of a seriesof amendments intended to provide additional base operating support funding forinstitutions based on the following variable levels: based on at least $300 per in-stateundergraduate student for those institutions with between 30 and 50 percent of studentswho are Pell grant recipients; based on $200 for those with between 20 and 29 percent;and based on $100 for those with under 20 percent, or in certain cases provide

See LIS State Budget Website for Complete Set of Adopted Amendments When Posted


additional enrollment management flexibility of up to one percentage point increase in the ratioof nonresident students over the prior year.)

Item 161 #1s

CWM - Graduate Aid (Research)


The College of William and Mary inVirginia

$79,400 $119,300 GF

Language:


Explanation:

(This amendment provides funding for graduate financial aid based on the State Council ofHigher Education for Virginia's recommendations.)

Item 216 #1s

VCU - Massey Cancer Center


Virginia Commonwealth University ($5,000,000) ($5,000,000) GF

Language:

Page 217, line 31, strike "$334,199,678" and insert "$329,199,678".Page 217, line 31, strike "$334,199,678" and insert "$329,199,678".Page 217, line 42, strike both instances of "$20,000,000" and insert "$15,000,000".

Explanation:

(This amendment reflects an increase of $2.5 million GF each year for support of cancerresearch at Virginia Commonwealth University, above the amount in FY 2020 of $12.5 millionGF.)

Item 220 #5s

VCCS - Advanced Regional Technology and Workforce Academy



Education

Virginia Community College System Language

Language:

Page 221, after line 24, insert:"T. The Virginia Community College System is requested to work together with the City ofNorfolk, Norfolk Public Schools, and other private or nonprofit entities for development of aplan for a possible Advanced Regional Technology and Workforce Academy in the City ofNorfolk. The Academy will provide adult and youth workforce and educational services byTidewater Community College in collaboration with Norfolk Public Schools and other localschool divisions. The Virginia Community College System shall submit a proposed governancestructure for the Academy and other proposed components of the plan to the Secretary ofEducation, the Secretary of Finance, and Chief Workforce Development Advisor forconsideration."

Explanation:

(This amendment requests a plan for an Advanced Regional Technology and WorkforceAcademy in the City of Norfolk prior to consideration of possible funding for detailedplanning.)

Item 221 #1s

VCCS - Community College Last Dollar Plus Workforce Initiative


Virginia Community College System ($25,205,953) ($23,205,953) GF

Language:


Page 221, strike lines 48 through 55.

Strike page 222.

Page 223, strike lines 1 through 3, and insert:

"D. 1. Out of this appropriation, $47,334,984 the first year and $49,334,984 the second yearfrom the general fund is designated for the Get Skilled, Get a Job, Give Back Program. TheProgram will offer financial assistance to low-income Virginia students who are eligible for in-state tuition pursuant to §23.1, Code of Virginia, and who are enrolled in a program at a



Virginia public associate degree-granting institution that leads to an occupation in a high-demand field and that is approved by the Chief Workforce Development Advisor as advised bythe Board of Workforce Development or other council established by the General Assembly orthe Governor. Such high-demand field shall mean a discipline or field in which there is ashortage of skilled workers to fill current job vacancies or anticipated additional job openings.The Chief Workforce Development Advisor will update the high demand occupational fieldslist annually and communicate changes to the governing boards of Virginia public associatedegree-granting institutions by April 1 of each year. The governing boards shall developpolicies to identify, approve and eliminate eligible programs.

2. In order to be eligible for financial assistance under this Program at a qualified publicinstitution, an applicant shall:

a. Receive a total household income less than or equal to two hundred percent of the FederalPoverty Level or equivalent Expected Family Contribution;

b. Be enrolled or accepted for enrollment as a full-time or part-time student at an approvedinstitution in an approved program specific to a high-demand field and shall be enrolled in aminimum of six credit hours per semester, or in an eligible non-credit program;

c. Have submitted complete applications for federal and state student financial aid programs forwhich they may be eligible; and

d. Complete and agree to the Community Engagement Agreement. The CommunityEngagement Agreement shall be developed by the State Council of Higher Education forVirginia and shall require students to complete two hours of work experience, communityservice or public service—excluding political activities—per each enrolled credit hour ofcoursework by the end of the academic term. Community service, public service or workexperience shall align to work readiness competencies of the institutions.

3. In order to remain eligible for financial assistance under this Program at an approvedinstitution, a participating student shall:

a. Demonstrate reasonable progress to complete their specific program of study to earn anassociate degree in three years;

b. Not exceed 150 percent of required credits of certificate or degree;

c. Maintain the required grade point average and satisfactory academic progress established by



federal Higher Education Act of 1965 Title IV requirements and;

d. Fulfill the required hours of work experience, community service or publicservice—excluding political activities—per each enrolled credit hour of coursework, pursuantto the Community Engagement Agreement.

4. Payments out of this appropriation shall provide (i) grants up to the amount necessary to payfor the last-dollar cost of the enrolled institution's tuition, mandatory fees, and textbook stipendfor eligible students after all other qualified federal and state financial aid, (ii) a Student SupportIncentive Grant up to $2,250 per year for eligible students who are enrolled full-time andreceive full Federal Pell Grants, and (iii) a Performance Payment to the institution when aStudent Support Incentive Grant recipient reaches 30 credits hours and earns a degree.

a. Each Student Support Incentive Grant shall be distributed to eligible students on a semesterbasis. An eligible student may receive up to $900 per semester and up to $450 per SummerTerm.

b. From these funds, the Virginia Community College System Office shall provide to eachVirginia public associate degree-granting institution a Performance Payment of up to $500 pereligible student receiving a Student Support Incentive Grant who successfully completes 30credit hours and an additional $400 per eligible student receiving a Student Support IncentiveGrant that earns an associate degree.

5. a. Funds out of this appropriation may be used for marketing and public awareness efforts toincrease participation in the program.

b. By September 1, 2020 the governing boards of Virginia's public associate degree-grantinginstitutions shall develop policies and procedures to ensure that program participation does notexceed budget appropriation, which is based on up to 24,000 students.

c. Funds that are not expended in a given year may be rolled over to the following fiscal yearand any remaining balance shall be reported to the General Assembly by October 1.

6. a. No later than September 1 of each year, each Virginia public associate degree-grantinginstitution shall submit to the State Council of Higher Education for Virginia and the VirginiaCommunity College System a report with data from the previous fiscal year on programparticipation, retention, and completion, including data on what high-demand fields aresupported by students at each institution.



b. The Council and System shall work collaboratively to compile the data provided by eachpublic associate degree-granting institution and report such data, in aggregate and by institutionannually, to the Governor, the Chairs of the Senate Finance & Appropriations and HouseAppropriations Committees, the Senate Education and Health Committee, and the HouseEducation Committee. The report must include student enrollment, retention rates betweenterms and academic years, wage data including median wages prior to enrollment and one yearafter completion of a credential or degree, wage rates of students who have not enrolled in overa year and did not complete a credential, and a comparison of demand of jobs and completionrates. The report must disaggregate the information above by program of study, college andstudent income level at start of program."

Explanation:

(This amendment provides $47.3 million GF the first year and $49.3 million GF the second yearfor the Get Skilled, Get a Job, Give Back program. Estimated funding is based on up to 24,000students enrolled in G3-eligible programs, who are income-eligible under 200 percent of theFederal Poverty Level.)

Item 4-2.01 #1s

Higher Education Enrollment Management Flexibility

Revenues

Nongeneral Fund Revenues Language

Language:

Page 536, line 10, after "25 percent" insert ", unless: i) such enrollment is intended to supportworkforce development needs within the Commonwealth of Virginia and ii) the number of in-state undergraduate students does not drop below fall 2018 census levels as certified by theState Council of Higher Education for Virginia.".Page 536, line 11, after "this restriction." insert "Any such increases shall be limited to no morethan a one percentage point increase over the prior year."

Explanation:

(This amendment allows more flexibility in the mix of in-state and out-of-state undergraduatestudents in order to address statewide enrollment projections, talent development needs, andinstitutional stability. This is intended to position Virginia's colleges and universities to leveragehigh-demand programs that draw talented students to Virginia to grow the state economy.Additional revenue will reduce pressure on in-state tuition rates and be used to support studentfinancial aid, investments in staffing, programs, and other infrastructure purposes aligned with



the Commonwealth's needs.)


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